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Update: HSTM missed Q4 and cut numbers for 2014. 2015 estimates are still way too high. The stock is down (8.5%), a sign that growth investors are getting fed up with HSTM cutting numbers.

Ask the cheerleading sell-side analysts who all congratulated management on a great Q4/2013:

  1. What were their original estimates for 2013 (Street started 2013 at 38c, HSTM earned 30c)
  2. What were their original 2014 numbers (Street started at 50c, Management guided 33-36c)
  3. How do they justify 2015 numbers? Rev growth with ICD headwind? Where is margin improvement coming from?
  4. Why place a 6X revenue on ICD revenues, which will decline?
Source: HealthStream Earnings Update